NIPPON REIT Sells Aging Tokyo Office, Buys Newer Asset to Refresh Portfolio and Boost Cash Flow

NIPPON REIT Investment Corp ( (JP:3296) ) has shared an update.

NIPPON REIT Investment Corporation has agreed to sell the Kudankita 325 Building in Tokyo’s Chiyoda ward to Mitsubishi Estate Co., Ltd. for ¥2.74 billion and to acquire the newer CIRCLES Nihonbashi Hamacho office property in Chuo ward from the same counterparty for ¥3.492 billion, as part of a strategic asset replacement program. By disposing of an over-30-year-old building with rising future capital expenditure needs at a price above book and appraised value, and reinvesting into a newer, relatively inflation-resistant property with stronger cash-flow potential, the REIT aims to lower the average age of its portfolio, enhance NOI, and stabilize unitholder returns; it also plans to utilize Japanese tax rules on asset exchanges to compress land book value and recognize a modest fixed asset exchange loss, optimizing tax efficiency while supporting internal growth and portfolio competitiveness.

The most recent analyst rating on (JP:3296) stock is a Buy with a Yen113813.00 price target. To see the full list of analyst forecasts on NIPPON REIT Investment Corp stock, see the JP:3296 Stock Forecast page.

More about NIPPON REIT Investment Corp

NIPPON REIT Investment Corporation is a Japan-listed real estate investment trust (REIT) that invests primarily in domestic real estate through trust beneficiary interests, focusing on offices, residences and other income-producing properties. Its assets are managed by SBI REIT Advisors Co., Ltd., which pursues portfolio growth and stability through active asset replacement and capital recycling within Japan’s real estate market.

Average Trading Volume: 3,808

Technical Sentiment Signal: Buy

Current Market Cap: Yen176.7B

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